Environment and Ecology
Indian Carbon Market
▪ Emissions Intensity Targets: The Union government will announce emissions intensity targets for nine industrial sectors by February-end 2024.
Carbon Trading Timeline:
▪ Industries will have one year to implement compliance measures.
▪ Carbon credit trading is expected to begin by October 2026.
▪ Indian Carbon Market:
▪ Aims to reduce, remove, or avoid greenhouse gas (GHG) emissions through a carbon trading framework.
▪ Focuses on emissions intensity (GHG emitted per unit of activity) rather than absolute cuts.
▪ Industries Affected :The nine sectors required to comply are iron & steel, aluminium, chlor-alkali, cement, fertilizers, pulp & paper, petrochemicals, petroleum refineries, and textiles.
Carbon Credit Mechanism:
▪ Unlike European emission trading, where companies must cap emissions, India’s approach focuses on making production more efficient.
▪ Example: Steel production—industries can adopt technologies that reduce coal consumption or recover waste heat.
Voluntary Carbon Offsets:
▪ Private projects, like afforestation, can generate carbon credits.
▪ These credits can be sold internationally to companies needing offsets for regulatory compliance.
India’s Climate Commitment:
▪ India aims to reduce its emissions intensity to 45% of 2005 levels by 2030.
India’s First Biannual Transparency Report (BTR)
▪ Being prepared under the 2015 Paris Agreement obligations.
▪ Will undergo technical review by UNFCCC-accredited experts.
Context :
▪ BTR is a new reporting requirement for all signatories of the Paris Agreement.
▪ Previously, only developed nations were required to submit such reports.
▪ The COP 2024 in Baku marked the first official submission of BTRs.
▪ India missed the December 2024 deadline but is finalizing the report.
Contents of the BTR:
▪ Covers energy efficiency trends and renewable energy adoption
▪ Provides a detailed overview of emissions sources and climate mitigation efforts.
Sectoral Contributions to Emissions (2020 Data):
✓ Energy Sector: 75.66% (largest contributor)
✓ Agriculture: 13.72%
✓ Industrial Processes: 8.06%
✓ Waste Management: 2.56%
Forest & Tree Cover:
▪ Sequestered 522 million tonnes CO2 (offset 22% of total emissions).
